Sweden’s government avoids a no-confidence vote after dropping planned tax hikes

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Sweden’s minority government has pulled two planned tax hikes 26 Aug

  • Sweden’s opposition has dropped plans for a no-confidence vote on some members of the minority centre-left coalition after it said this morning that it would drop two of three planned tax hikes in its 2018 budget.
  • government says it would still go ahead with an airline tax
  • the dropped measures would have raised about SEK 4bln

Fin Min Magdalena Andersson told a news conference earlier:

“We still believe that these plans would have contributed to decreasing inequality (in society).

“But given the current circus in parliament we have decided to withdraw those proposals.”

Opposition Center Party leader Annie Loof of the opposition replied on Twitter:

“It is regrettable that the government pushes through the airline tax, but we won’t demand a no-confidence vote due to that.”

Sweden’s usually stable political background has been thrown into turmoil in recent years with the rise of the anti-immigration Sweden Democrats.

Next Swedish election is not due until 9 Sept 2018.

SEK should find some support with this latest crisis averted. The kroner was quick to jump on yesterday’s USD decline but failed, as many did, to outgun the euro.

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